Event Promotion and Management Services in Australia Industry Market Research Report Now Updated by IBISWorld

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The Event Promotion and Management Services industry provides several services; however, these services are all subject to the same systemic risks, primarily Australia's economic conditions. IBISWorld estimates that the industry's revenue, which is composed of event managers, tour promoters and ticketing agencies' earnings, has declined over the five years through 2012-13. For these reasons, industry research firm IBISWorld has updated its report on the Event Promotion and Management Services industry in Australia.

IBISWorld Market Research

Intense competition between the major ticketing agencies could dampen revenue growth

Melbourne, Australia (PRWEB)November 20, 2012

The Event Promotion and Management Services industry provides several services; however, these services are all subject to the same systemic risks, primarily Australia's economic conditions. IBISWorld estimates that the industry's revenue, which is composed of event managers, tour promoters and ticketing agencies' earnings, have declined an annualised 5.4% over the five years through 2012-13. According to IBISWorld Industry analyst Ee Jen Lee, “the largest decline in industry revenue was recorded in 2008-09, in line with the global economic downturn”. As a significant portion of the industry's products are dependent on the individual's willingness to consume discretionary products, industry revenue is sensitive to movements in real household disposable income and household savings ratio. For these reasons, IBISWorld estimates that industry revenue has declined for four consecutive years, with this year's revenue expected to decline by 2.6% to $3.69 billion.

Despite the weak operating conditions, new entrants have spotted niche opportunities, especially in the ticketing agencies segment. Funded by well-capitalised backers, the downstream markets have welcomed these alternatives especially in a market that has been long dominated by two ticketing agencies. The event management segment continues to be populated by small owner-operators. In fact, the number of owner-operators is estimated to have risen over the past five years. “The industry is forecast to grow over the five years through 2017-18”, says Lee. The positive economic outlook will translate into higher business confidence and consumer confidence and thus more generous expenditure on discretionary items such as business events and live performances. However, more intense competition between the industry's largest players – especially between companies providing ticketing support – could dampen revenue growth. Further, as China rises to displace Australia as the region's premier exhibition and convention location, Australian businesses will seek new growth opportunities in overseas markets. In reverse, Australia's appetite for live performance has also made it an attractive destination for foreign companies to expand their presence. Consequently, industry globalisation and international trade will grow.

Market concentration in the Event Promotion and Management Services industry in Australia is low. As businesses within the industry provide a broad range of services, no major company dominates the sector. While there are a lot of prominent companies within the industry, such as Ticketek (Nine Entertainment Co) and Ticketmaster, the diversity of this industry means that no single company controls a majority share of the market. Further, the low barriers of entry into event management means that there are numerous owner-operators within the market. This is because the capital investment required to establish an event management company is low, with human capital being the main input for such services.

The primary activities of industry participants are event management and ticketing services. Activities in this industry also include tourist information centre operations and fundraising on commission or fee basis.

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.